Insurance is becoming more accessible to people who would otherwise be unable to buy insurance policies or open bank accounts as a result of AI, according to AXA’s chief information officer (CIO) Natasha Davydova.
Speaking at an industry event hosted by tech giant IBM, Davydova said that AI can investigate different data points which makes insurance more personalised and tailored to customer needs.
“More data sources from internet of things will allow us to be more accurate with risk assessment, to predict things and be more proactive,” Davydova explained. “I have already seen the social impact of AI on insurance, as in the past if you had certain health conditions you wouldn’t be able to get the insurance you wanted.
“But with more precise data, more granular data, more people can access insurance.”
Speaking about the banking industry, she said that for people who don’t have credit ratings, financial institutions can now look at other data points to find products to suit their needs.
Davydova explained that automation is having a significant impact on the insurance industry by enabling claims to be filed without the customer having to take any action at all.
“When you are at the airport waiting for a plane and four hours have passed, you start thinking about calling your insurer,” she said. “But if your claim system is integrated with Amadeus, the flight information system, you can have your travel insurance claim paid automatically without contacting customer service.”
Another area where automation is having an impact on insurance is environmental situations such as floods.
Davydova said that in some cases payouts occur automatically when floods reach a certain level.
Despite the positive impact of AI, Davydova warned that firms have to be mindful of whether customers want to use it and if it is suited to more complex situations.
“If your car breaks down you could be stranded at the roadside with a small child and if your policy doesn’t have a courtesy car, a person would understand that and make an exception,” she said. “But AI with its predetermined roles would not.”
